Free Letter Before Action Template (UK)
A free LBA template you can copy and send today, plus a plain-English guide to writing a formal demand letter when a client won’t pay. No signup required.
What is a Letter Before Action?
A Letter Before Action (sometimes called a Letter Before Claim) is a formal written demand for payment. It tells your client exactly how much they owe, gives them a clear deadline to pay, and warns that you will start court proceedings if they don’t.
It is not just a strongly-worded email. It is the recognised last step before legal action in the UK. Courts expect you to send one before filing a claim. This expectation comes from the Pre-Action Protocol for Debt Claims, part of the Civil Procedure Rules. Failure to send a proper LBA and allow reasonable time for response can result in the court penalising you on costs, even if you win.
The good news: roughly half of debtors pay up after receiving an LBA. Something about seeing “court proceedings” in writing tends to focus the mind. For most freelancers, this is where the chase ends. You get your money without ever setting foot in a courtroom.
When should you send one?
An LBA is not your first move. It comes after you have already tried the polite approach: a friendly reminder, a follow-up a week later, maybe a firmer email warning them about late payment fees. If they have ignored all of that, or they keep promising to pay and never do, it is time for the letter.
As a rough guide: if an invoice is more than 30 days overdue and your regular reminders have been ignored, an LBA is the right next step. There is no legal minimum waiting period (technically you could send one the day after the due date), but courts expect you to have made reasonable efforts to resolve the matter first.
The typical escalation path
- Invoice sent on or before the due date
- Polite reminder: 1 to 3 days after the due date
- Firmer follow-up: 7 to 14 days overdue
- Final warning mentioning late payment interest: 14 to 30 days overdue
- Letter Before Action: 30+ days overdue, previous reminders ignored
- File a court claim via Money Claim Online if no response within 14 days
If you are using PennyFetch, the automatic reminders handle steps 2–4. When those run out, you can send additional reminders or generate a Letter Before Action directly from the invoice (Pro feature).
What must a Letter Before Action include?
Your LBA needs to be clear, factual, and specific. Here is what to include:
- Your full name and address: your trading name and correspondence address.
- Their full name and address: for limited companies, use the registered office address from Companies House.
- The date: this starts the clock on your deadline.
- The words “Letter Before Action”: make it unambiguous what this letter is.
- What the debt is for: the invoice reference, a brief description of the work, and the original due date.
- The original amount owed: the invoice amount in pounds.
- Statutory interest claimed: currently 11.75% per year (3.75% Bank of England base rate + 8%). Use the late payment calculator to get the exact figure.
- Fixed compensation: £40 (debts under £1,000), £70 (£1,000–£9,999.99), or £100 (£10,000+).
- A clear deadline: 14 days is standard for business debts.
- A warning of court proceedings: state clearly that you will issue a claim if they do not pay by the deadline.
You should also mention that you are open to discussing the matter if there is a genuine dispute. Courts look favourably on parties who have tried to resolve things before filing a claim.
Free Letter Before Action template
Copy and customise this template. Replace everything in [square brackets] with your details. Feel free to adjust the wording to suit your situation. There is no magic formula, and the important thing is that it covers all the points listed above.
[Your full name / trading name]
[Your address]
[Your email]
[Client name / company name]
[Their address]
[Date]
LETTER BEFORE ACTION
RE: UNPAID INVOICE [REFERENCE]: FORMAL DEMAND FOR PAYMENT
Dear [Client name],
I am writing regarding invoice [reference] dated [invoice date] for [brief description of work], which was due for payment on [due date]. Despite previous correspondence, this invoice remains unpaid.
In accordance with the Late Payment of Commercial Debts (Interest) Act 1998, I am entitled to claim statutory interest at 11.75% per annum and fixed compensation for debt recovery costs. The total amount now due is as follows:
I hereby demand payment of the full amount within 14 days of the date of this letter (by [deadline date]).
If I do not receive payment or a satisfactory response by this date, I intend to issue proceedings in the County Court without further notice. Any court fees and additional interest accrued will be added to the claim.
If you wish to discuss this matter or if there is a genuine reason the invoice has not been paid, I am willing to consider alternative arrangements. Please contact me at [your email / phone] within the deadline above.
Yours faithfully,
[Your name]
Want a ready-to-send PDF instead?
Use the free LBA generator to create a professional Letter Before Action PDF with statutory interest calculated automatically. Or if you use PennyFetch to track your invoices, PennyFetch Pro generates it from your invoice data with one click.
Calculating what you’re owed
Under the Late Payment of Commercial Debts Act 1998, you can add two things on top of the original invoice amount:
Statutory interest
Currently 11.75% per year (8% + the Bank of England base rate of 3.75%). Interest accrues daily from the day after the due date. On a £2,000 invoice that is 60 days late, that works out to roughly £38.63.
Use the free late payment calculator to get the exact figure for your invoice.
Fixed compensation
This is a flat amount to cover your debt recovery costs. The tiers are set by law:
| Invoice amount | Compensation |
|---|---|
| Up to £999.99 | £40 |
| £1,000 – £9,999.99 | £70 |
| £10,000 or more | £100 |
You do not need to have mentioned statutory interest in your original invoice or contract. It is your right under UK law on any commercial debt. You can claim it even if you never mentioned it to the client before.
How to send your Letter Before Action
Send it by Royal Mail Signed For and by email. Do both.
The signed post gives you a delivery receipt: proof that the letter arrived. This matters if the case goes to court and they try to claim they never received it. The email ensures they see it quickly and gives you a timestamped copy.
Practical tips
- For limited companies, send to the registered office address (find it on Companies House for free).
- Also send to the person you have been dealing with at their work address if different.
- Keep a copy of everything: the letter, the proof of posting receipt, and the email.
- Set yourself a calendar reminder for the deadline date so you know when to follow up.
- Do not send it via social media, WhatsApp, or text message. Stick to post and email.
What happens after you send it?
There are four common outcomes. Here is what to do in each case.
They pay in full
This is the most common outcome. Accept the payment (including interest and compensation if they paid it), mark the invoice as paid, and move on. No need to go any further.
They offer a payment plan
If they genuinely cannot pay the full amount immediately but are willing to pay in instalments, it is usually worth accepting. Get the agreement in writing: dates, amounts, what happens if they miss a payment. Half the money now is better than a court battle over all of it.
They dispute the debt
If they raise a genuine dispute (the work was not completed, the quality was not as agreed), try to resolve it. If their dispute is vague or just stalling, respond briefly in writing explaining why you disagree and restate your deadline. You can still file a court claim even if they dispute it. The court will decide.
They ignore it completely
If the deadline passes with no response, you can file a claim via Money Claim Online. If they then ignore the court claim too, you can request a default judgment, which means you win automatically without a hearing. See the small claims court guide for the full process.
Court fees if they do not pay
If the LBA does not work and you need to file a court claim, here is what it costs. These fees are for online claims via Money Claim Online (paper claims cost more).
| Claim amount | Court fee |
|---|---|
| Up to £300 | £35 |
| £300.01 – £500 | £50 |
| £500.01 – £1,000 | £70 |
| £1,000.01 – £1,500 | £80 |
| £1,500.01 – £3,000 | £115 |
| £3,000.01 – £5,000 | £205 |
| £5,000.01 – £10,000 | £455 |
Fees are for claims filed online via Money Claim Online (MCOL). Paper claims cost more. Court fees are added to your claim and recoverable if you win.
Court fees are added to your claim amount, so the defendant pays them if you win. For a full walkthrough of the process, see the small claims court guide.
Frequently asked questions
Related guides
How to Chase an Invoice Politely
Email templates for every stage of the chasing process.
Your Late Payment Rights
The Late Payment Act explained in plain English.
Small Claims Court Guide
What to do if they ignore the LBA.
Late Payment Calculator
Calculate your statutory interest and compensation.
Client Won't Pay?
Complete escalation guide for unpaid invoices.
UK Late Payment Laws 2026
New legislation and what it means for you.
This guide is for informational purposes only and does not constitute legal advice. For complex disputes or high-value claims, consider consulting a solicitor. Statutory interest rates and compensation amounts are based on current legislation and may change. See GOV.UK for official guidance.
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